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Home Articles Changed Jobs: How to File Income Taxes?

Changed Jobs: How to File Income Taxes?

IndianMoney.com Research Team | Updated On Thursday, July 18,2019, 10:15 AM

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Changed Jobs: How to File Income Taxes?

 

 

Filing income tax returns is not easy if you have changed your job and have more than one employer in the Financial Year. If you have changed jobs in FY 2018-19 there would be two Form 16s. If you are a salaried employee, make sure to file ITR before July 31st 2019.

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Changed Jobs: How to File Income Taxes?

What is Form 16?

Form 16 is a certificate issued by your employer. It contains all the information you need to file the income tax return. The employer would issue Form 16 immediately after the financial year in which the tax is deducted. This is on or before 15th June of the next year. Your Form 16 has 2 parts:

Part A:

  • Name and address of the employer
  • Employer TAN & PAN
  • Employee PAN
  • Summary of income tax deducted and deposited each quarter. This would be certified by your employer.

See Also: 5 Simple Steps To File Income Tax Returns

Part B:

If you have changed jobs in the financial year, then you must decide if you want Part B from both the employers or just the last employer.

Part B shows:

  • Detailed salary breakup
  • Breakup of exempted allowances under Section 10.

Take a Look at New Changes in Form 16:

  • A break-up of tax exempt allowances like HRA or LTA.
  • Chapter V1A break-up (Detailed tax-breaks under Section 80C to Section 80U as mentioned by your employer).
  • The previous employer income as reported to  current employer.
  • The standard deduction as announced by Budget 2018.
  • Other income reported to your employer. (This is other than salary).

See Also: Income Tax Return Filing And Eligibility

Steps to File ITR with More Than One Form 16

If you have more than one Form 16 then compute taxes after considering each Form 16 document.

STEP 1: Consolidate total salary you earn from all employers during the financial year.

STEP 2: Deduct the value of exempt allowances and perquisites (This is HRA, Travel allowances and so on).

STEP 3: You can claim deductions under Chapter V1A. (This is Section 80C to Section 80U). (Make sure the tax deductions are availed only once against total income).

STEP 4: Calculate tax liability based on income tax slabs.

STEP 5: You then subtract TDS deducted by all the employers mentioned in Form 16. (Crosscheck TDS deducted with Form 26AS).

See Also: How to File Ones Income Tax Returns Online?

Easy Ways to File Tax Return with Two Form 16s:

  • Both employers will give Form 16 which has details like total income from salary, TDS and Section 80C.

(Do note that if you have informed the new employer on your previous salary, Form 16 from the new employer would have the computed numbers).

  • Login to the income tax website and link Aadhaar to PAN. You then start the e-filing process.
  • You then choose the right ITR form. Fill in your full name, address and state if original or revised ITR.
  • In income tax details enter income from salary. Manually add income from both companies. 
  • You then give deduction details. (Chapter V1A deductions). The system computes income tax payable.
  • On the next page you get TDS details from salary.
  • If new employer details are not mentioned, you can add them.
  • You then verify taxes paid and get details on tax refunds if any. Reconcile details of taxes paid from Form 26AS. You get this from income tax website.

See Also: Income Tax Law And Income Tax

Update Current Employer on Income Earned on Previous Job:

When you join a new job, submit Form 12B to the new employer. Give details of salary break-up like Basic Salary, HRA, LTA and perquisites/allowances.

Also mention tax deductions like Section 80C; Section 80D and so on already availed. (Mention TDS on salary deducted by previous employer).

After you furnish Form 12B, the employer will furnish the consolidated Form 16 based on details given in Form 12B.

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